The Drinking-Water Assistance Programme (DWAP)

The Capital Assistance Programme (CAP)

CAP is the financial-assistance part of the Drinking-Water Assistance Programme (DWAP).

TAP helps many small supplies optimise their treatment processes, manage risks and produce a safer water. For some supplies though, TAP isn't enough on its own and major new works and equipment will be needed. This may not be affordable within a small community. If so, it's time to apply to CAP for financial assistance.

News 1 Sep 2009: Capital Assistance Programme put on hold by Government.

Use the following as a simplified guide. Refer to official CAP documentation for definitive details.

What will CAP fund?

The Capital Assistance Programme provides funding to community drinking-water supplies to help them provide safe drinking-water. This might include:

source works, either ground or surface water,
treatment plant and water storage works,
installation or upgrade of reticulation systems,
equipment for further treatment, testing or remote monitoring,
training.

Who can apply?

Not everyone can apply for CAP funding. The supply must:

be owned by a local authority or local residential community,
be owned by an incorporated society or other legal entity,
be operated on a not-for-profit basis,
provide drinking-water for a population of less than 5,000 people.

In other words, it is a supply owned and operated by a community or group of people in the interests of a wider group of people. It is not privately owned, but it may be a sports club, church, marae or similar.

Communities without a reticulated supply, but wanting one, can also apply. Such applications would need to demonstrate wide community support and/or a clear public health need.

What else is necessary?

For a community or local authority to be eligible for Capital Assistance Programme funding they will need to:

have difficulty funding capital improvements themselves,
participate in the Technical Assistance Programme,
have an optimised supply within current resources,
have both a risk management plan and a sustainability plan,
be registered as a New Zealand drinking-water supply.

Support for completing the last three items will be an inherent part of TAP participation. TAP will also help identify whether capital upgrades to the system are necessary

TAP participation is required first, generally for at least 12 months. This makes sense, because the community must not only want a good water supply, but be prepared to put in an effort to find out what is needed. If nothing else, this effort can demonstrate an ability and willingness to commit to maintaining any solution assisted through funding.

Criteria for CAP Allocation

Eligibility criteria are set in a way that gives the best access to funds to the communities that have the greatest need. Broadly this means considering three factors for the community:

Deprivation index (DI). This is value between 1 and 10, where 10 indicates the highest inability to self-fund supply improvements. The DI is derived from census data. A supply with a DI of 1 to 3 will not receive funding.
(Read more about the Deprivation Index on the MoH website)
Population. Less than 500 is more likely to receive funding than higher populations. Must be below 5,000 to be considered. Normal rather than peak seasonal population is used.
Public health need. A supply with high health risks has priority over lesser concerns.

Maximum Percent Funding

The 2006 MoH document Criteria for Capital Assistance presents full information on the maximum percentage of capital costs that CAP will fund. The following table shows all options to 1,000 population, then four examples above that:

Population	Deprivation Index	Max Funding
Less than 500	7 or more	95%
	6	80%
	5	60%
	4	50%
501 to 1,000	8 or more	95%
	7	90%
	6	80%
	5	60%
	4	45%
2,400	8	80%
	5	45%
4,800	8	55%
	5	20%

The CAP Application Process

Once a supplier has determined that they meet CAP requirements, they can apply for CAP to the DWAP Office at the Ministry of Health. TAP facilitators can advise on process details.

The DWAP Office considers applications in two Rounds per year, which finish on 31 March and 30 September. Their recommendations, with ranking scores, are forwarded to the Sanitary Works Technical Advisory Committee about 3 months later, who in turn make a funding recommendation to the Minister of Health.

Successful applicants will be informed, a contract will be arranged, and the supply improvement can then proceed.